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Gold Dips As Powell Testimony Looms

Gold prices slipped on Wednesday and the dollar pushed higher as inflation and interest-rate worries returned to haunt investors.

Spot gold slipped 0.2 percent to $1,828.68 per ounce, while U.S. gold futures were down 0.4 percent at $1,830.70.

Risk-off sentiment prevailed in financial markets ahead of speeches by a couple of European Central Bank policy-makers and U.S. Federal Reserve Chair Jerome Powell later in the day.

Powell will testify on the semi-annual monetary policy report in the Senate.

Investors will closely watch his comments for clues on the aggressiveness of the tightening cycle in the light of high inflation.

Markets are assigning a 90 percent probability of a 75-basis point rate hike next month, according to the CME FedWatch tool.

Fed Bank of Richmond President Thomas Barkin said the central bank should hike interest rates as fast as it can without causing undue harm to financial markets or the economy.

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